Saudi Arabia pushes for sustainability

Saudi Arabia called on Tuesday for a shift from investing for short-term gains to sustainable growth during the 8th Future Investment Initiative in Riyadh.

Yasir Al-Rumayyan, chairman of the FII Institute and governor of Saudi Arabia's Public Investment Fund, called for a shift toward investments based on "sustainable growth that benefits both our economies and societies".

"We have the responsibilities and the opportunities to share a future that invests not only in our economies but in humanity itself," Al-Rumayyan said.

Under the theme "Infinite Horizons: Investing Today, Shaping Tomorrow", the three-day conference focuses on global investments aimed at addressing major issues, including artificial intelligence, robotics, education, energy, space and sustainability.

Al-Rumayyan said economic and social challenges, along with political tensions, hinder progress toward sustainability. For the energy transition to truly succeed, both public and private sectors must collaborate, ensuring that policy and investment act as catalysts for change, he added.

"Today, more than ever, we recognize that economic, social and environmental outcomes are interconnected. And these must be the core of our decision-making."

The transition to a clean economy will require long-term efforts, with a goal of empowering future generations, he said. However, he acknowledged that rising living costs remain a significant concern.

He encouraged leaders and global investors to seize the opportunity to contribute to a sustainable economy that benefits all humanity.

Growing role

Referring to the large amount of investment of the Future Investment Initiative, he mentioned that it has facilitated more than $125 billion in deals over seven years. He projected that by 2030, economies including Saudi Arabia will play a more significant role, particularly in infrastructure and technology.

During the conference, Prince Abdulaziz bin Salman Al Saud, minister of energy of Saudi Arabia, said the country is evolving from a reliance on oil to embracing all forms of energy, including low-carbon products, a shift that represents a comprehensive economic diversification strategy.

Saudi Arabia is moving from a linear carbon economy to a circular carbon economy, rapidly deploying renewable energy sources at scale, he added.

In addition to having the largest grid in the Middle East and North Africa region, Saudi Arabia is reinforcing and expanding its grid to reliably integrate renewables and meet the accelerated demand growth, he said.

The country is also transitioning from being an importer to an exporter of manufactured and engineered products, making substantial investments in electricity infrastructure to support its green growth initiatives, he added.

Discussing the world economy on Wednesday, Mohammed bin Abdullah Al-Jadaan, minister of finance of Saudi Arabia, said international trade is growing despite much negative news.

"There are serious challenges around the world that cannot be solved by one country. Global communities need to come together. Therefore, a cooperative approach is necessary," he said.

Focusing on the theme "Infinite Horizons", the FII challenges attendees to think beyond conventional limits and explore investment opportunities that bridge current challenges with future possibilities. The event's Investment Day is scheduled for Thursday.